Beware ‘predatory buyers’ in hot aged care market: Ansell
Red flags include buyers introducing break fees late in negotiations, expanding them to cover issues “discovered” during due diligence, and using long lists of “findings” to chip away at price and tighten conditions – often until a fatigued vendor just wants the deal done.
Ansell Strategic’s FY25 Deal Tracker confirms what many boards already suspect: the third wave of consolidation is well underway – and not every bidder is playing fair.
While most investors act with integrity, the report flags a growing cohort of “predatory buyers” – including some Not For Profits – using aggressive tactics to secure assets below fair value as exits accelerate across aged care and retirement living.
The 21-page Deal Tracker says their playbook often starts with a strong headline price tied to early exclusivity. Once that’s secured, the tone shifts. Due diligence becomes a flood of requests, consultant visits and “urgent” issues – fixating on minor compliance or technical points rather than real deal risks.
While one team manufactures risk, another runs genuine due diligence, dragging timelines well beyond agreed limits and then blaming delays on the vendor.
“In one of our deals, a buyer deliberately leaked the transaction to the unions to create panic at the vendor’s homes and delay the process,” said Managing Director Cam Ansell (pictured top).
Red flags include buyers introducing break fees late in negotiations, expanding them to cover issues “discovered” during due diligence, and using long lists of “findings” to chip away at price and tighten conditions – often until a fatigued vendor just wants the deal done.
The Deal Tracker urges boards to “grow by design, not default” – and sets out practical steps to safeguard the sales process and price.
You can download the full FY25 Deal Tracker – including transaction trends and seller checklists – here.
